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2009 objective – consolidation of financial security

Interview with Mihai Fercala, President and CEO of S.I.F. Transilvania.

The General Assembly of Shareholders was called in session on April 24, 2009, with a very rich agenda. What are the items on the agenda which, in your view, are the most important for S.I.F. Transilvania?

The Board of Directors of S.I.F. Transilvania, under the law, called the General Assembly of Shareholders in ordinary session on April 24/25, 2009, the agenda covering especially important matters such as: the approval of the annual financial reports, of the annual administrators' management report, the distribution of the net profit for specific purposes and the setting of the dividend, the analysis and approval of the revenues and expenses budget and of the strategic activity programme for the 2009 financial year, and the election of company administrators for a four-year term.

What was 2008 like? We have noticed that the General Assembly of Shareholders is to establish the value of the dividends. What were the factors that influenced the portfolio compared to 2007?

S.I.F. Transilvania closed the 2008 financial year with a gross financial result of RON 103,243,475 and with a net profit of RON 94,676,010, notable economic performance synthetic indicators which place our company among the most cost-effective operators of its kind. The Board of Directors has proposed and recommended the Ordinary General Assembly of Shareholders to use the net profit made in 2008 to constitute the reserves required under the law (5 per cent), own sources of financing (60 per cent) and to pay dividends (35 per cent). Our portfolio of financial instruments has been negatively influenced by the general effects of the global financial crisis, by investors' lack of appetite for taking risks, by the low confidence in financial markets in general and in the stock market in particular.

2009 appears to be a difficult year from the economic point of view. What is your forecast on the activity of S.I.F. Transilvania this year?

The local and international premises and context do not appear to be very bright in 2009, indeed. Major rating agencies and institutions are pessimistic about the regional and national economic trend, forecasting zero growth or even economic shrinkage in many areas.

There are, however, some positive signals received especially in March of this year, indicating a range of global and regional economic and political plans designed to help national economies recover, remove toxic products from the balance sheets of large commercial banks across the ocean and in Europe, establish public-private partnerships able to accelerate sectoral economic development, to permit the intervention of the state in the real economy to salvage it or to safeguard its future growth.

With a view to the aforementioned, S.I.F. Transilvania's priority startgic objectives in 2009 are as follows: consolidate the company's financial security; continue the restructuring of the financial product portfolio; develop new marketing and investment policies in the context of the financial crisis; improve portfolio management; implement general and specific risk management.

How would you comment on the negative evolution of the Bucharest Stock Exchange? How has BVB's performance affected you?

The evolution of quotations for the SIF3 stocks in 2008 was subject to the strongly negative trend visible with all issuers quoted on the national and international stock markets. The majority of shares quoted on the Bucharest Stock Exchange (BVB) have fallen by over 65-70 per cent and stock exchange indexes plunged by 70.5 per cent (BET), by 70.3 per cent (BET-C) and by 84.1 per cent (BET-Fi - describing the synthetic evolution of quotations for the five financial investment companies - SIFs).

How is the current crisis affecting the confidence of investors-shareholders?

Under the current conditions of economic and financial crisis, investors on the stock market have a moderate and even reserved attitude on stock market specific risks, in many cases preferring to invest their available funds on the monetary market that gives acceptable yields at relatively low risks.

Other categories of investors, especially those with a speculative profile, trade strategic shares as they find current prices to be very attractive and also hoping to be present on the market when the general stock exchange trend reverses.

Some positive signs suggesting a positive turn in the world stock markets' evolution came in March 2009, when the Dow-Jones index (USA) gained 14.9 per cent, the FTSE index (UK) - 5 per cent, the DAX index (Germany) - 12.5 per cent, the NIKKEI index (Japan) - 12.8 per cent. If they turn out to be contiguous and sustainable, such signals expected from the world's major stock exchanges, in combination with improved ratings from big specialised agencies and with the beginning of a global economic growth could be as many reasons for sophisticated or regular investors to go back to the stock markets and restore a state of normality.

 

Sursa: http://www.nineoclock.ro

Tags: stock market financial economic shareholders transilvania general bet sif bvb

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